09/12/2016 - 15:00

NRW reveals Hughes price, Allegro completes JSW buy

09/12/2016 - 15:00

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NRW Holdings has revealed the price it has paid for the east coast operations of failed company Hughes Drilling, on the same day private equity fund manager Allegro formally acquired Hughes’ Perth-based subsidiary JSW Australia for an undisclosed sum.

NRW reveals Hughes price, Allegro completes JSW buy

NRW Holdings has revealed the price it has paid for the east coast operations of failed company Hughes Drilling, on the same day private equity fund manager Allegro formally acquired Hughes’ Perth-based subsidiary JSW Australia for an undisclosed sum.

NRW told the market it expects to have completed its acquisition of Hughes’ coal production and drilling operations on the east coast by the close of business today, with the $11 million deal to be funded out of its existing cash reserves.

The east coast operations comprise 35 large drill rigs and around 140 employees.

Meanwhile, JSW will fall under ownership by Allegro after the private equity fund manager received approval from JSW creditors yesterday.

The Perth-based subsidiary operates a fleet of 18 drill rigs and employs around 140 staff.

Allegro managing director Adrian Loader said the recapitalisation offer followed extensive talks with Hughes administrator McGrathNicol and JSW management, and meant the target would continue to operate.

“Despite being in voluntary administration since September, JSW has continued to win work and has a promising contract pipeline, which shows the underlying strength of the business,” Mr Loader said.

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